Economics & Finance / Economic Theory / Behavioral Economics

Why 71% of Kenyan Farmers Fail to Buy Fertilizer (Even with 70% Returns) - A Behavioral Nudge Fix

Esther Duflo, Michael Kremer, Jonathan Robinson

Most farmers in Kenya plan to use fertilizer but never do. The problem isn't poverty or lack of knowledge—it's a subtle behavioral bias called present bias. This video breaks down a groundbreaking study by Esther Duflo, Michael Kremer, and Jonathan Robinson (2009) from MIT and Harvard. They tested a simple 'nudge'—a small, time-limited discount offered right after harvest—and found it boosted fertilizer use by up to 60%, outperforming huge subsidies. Discover why timing beats price, how 71% of farmers fall into a procrastination trap, and why a cheap, scalable solution can transform agriculture without breaking budgets. Perfect for anyone interested in behavioral economics, development policy, or practical ways to improve lives.